Infosys chairman R. Seshasayee on Friday clarified that despite resignation of Vishal Sikka, there will be no change in the company's share buyback plan.

Seshasayee said, “There will be no change to our buyback plan, None of the things set in motion are going to be stopped.”

Infosys, in a statement to the stock markets on Friday morning stated that the Board of Directors has accepted resignation of Dr Vishal Sikka as Managing Director and Chief Executive Officer of the Company with immediate effect.

This took heavy toll on Infosys share price on Friday so much so that it touched 52-week low of Rs 884.40 per piece. At 1500 hours, the company was trading at Rs 923 per piece down by Rs 100 or 9.71%.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “The market has signaled its displeasure with the stock tanking by 7 % by 11. 30. The remark that “Vishal is more CTO material than CEO material” might have turned out to be the last straw. This unfortunate incident might turn out to be an opportunity if the board quickly finds a new CEO who can lead from the front without disruptions from the promoters."

On the previous day, share price of Infosys share price rose the most in nine months. The stock touched over Rs 1,000-mark, up 5% - last time such rise was recorded in the month of November 2016.

On April 13, 2017 Infosys said, “The board has identified an amount of up to Rs 13,000 crore ($ 2 billion) to be paid out to shareholders during financial year 2018, in such manner (including by way of dividend and/or share buyback), to be decided by the board, subject to applicable laws and requisite approvals, if any.”

Analysts at HDFC Securities at that time had said, “Infosys management has goofed up in managing the investor and promoter expectations of a buyback. Unless Sikka and his team pull out a real rabbit in the form of a higher guidance or fall in line with the investor expectations of returning some cash, Investors are likely to move on to more investor friendly companies."

Pranav Haldea, Managing Director of Prime Database, said, "Buyback has become a more profitable way to return money to shareholders than dividend, after changes were made to the dividend tax policy."

Idle cash in companies balance sheet effects return ratios. While there is also pressure from shareholders as stocks haven't performed well. Hence, cash being returned to them via buyback.

Liquid assets including cash and cash equivalents and investments of Infosys were Rs 39,335, a rise crore as on June 30, 2017 as compared to Rs 38,773 crore as on March 31, 2017.

So far, Infosys peers like TCS, Wipro and HCL Technologies have explored the share buyback market.

TCS being the highest not only in IT sector but also largest share buyback in the history of India Inc. TCS buyback plan consisted of Rs 16,000 crore, followed by Wipro at Rs 11,000 crore and HCL Tech at Rs 3,500 crore.